On Tuesday, Oppenheimer maintained its positive stance on Marvell (NASDAQ:MRVL) Technology Group Ltd. (NASDAQ:MRVL), reiterating its Outperform rating and a stock price target of $80.00. The reaffirmation came in light of recent discussions around the role of optical transceivers in data centers (DC) following a keynote speech at the GTC conference on Sunday.
During the conference, NVIDIA Corporation (NASDAQ:NVDA)'s CEO introduced the Blackwell AI accelerator architecture. Management highlighted the NVSwitch's use of direct drive copper, which saves significant power in the DGX GB200 system. This comment led to some confusion regarding the future use of optical transceivers within data centers.
Oppenheimer clarified that the CEO's remarks do not indicate a shift in the current data center architecture. Copper cabling, which is commonly used today for short-reach intra-rack connections, is seen as cost-effective and viable for the foreseeable future.
Optical transceivers, on the other hand, are typically used for longer-distance connections and higher performance requirements where they have already replaced copper.
Marvell's growth prospects are expected to remain robust, benefiting from the ongoing transition to 800 Gbps and the anticipated adoption of 1.6 Tbps PAM4 pluggable modules. The company's position in the data center AI segment is seen as a key driver for its structural growth.
The analyst firm underscored that the recent discussions do not alter Marvell's growth narrative, which continues to be underpinned by strong fundamentals in the data center industry. Marvell's stock remains a top pick for Oppenheimer, as the company stands to gain from the evolving technological landscape in AI and data center infrastructure.
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